A couple gets divorced in 2019. In the divorce decree the ex-wife agreed to transfer...
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Accounting
A couple gets divorced in 2019. In the divorce decree the ex-wife agreed to transfer 100 shares of common stock worth $50,000 and pay the ex-husband $24,000 per year for five years (or until his death or remarriage). What amount (if any) is included in the ex-husband's gross income this year?
A. $50,000
B. None of the payments are included in gross income
C. $24,000
D. $74,000
E. $170,000
Which of the following statements regarding tax credits is true?
A. Tax credits reduce tax liability dollar for dollar.
B. Tax credits reduce taxable income dollar for dollar.
C. None of these statements is true.
D. Tax credits provide a greater tax benefit the greater the taxpayer's marginal tax rate.
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